This chapter examines key challenges and potential improvements in the areas of user interaction and dynamic explanations. It highlights the need for XAI systems to address context factors beyond their predefined scope, it points to the potential need to cocreate new concepts that are adapted to particular explainees, and it provides a clear overview of the XAI system’s underlying knowledge structure and interaction steps. Emphasis is placed on mixed-initiative interaction in which the system can lead or respond based on the context and the explainee’s reactions while asserting the importance of maintaining coherence across consecutive explanations. These advances aim to make XAI systems more flexible, interactive, and user-centric. An operationalization section outlines how such social XAI systems could be implemented based on the XAI capabilities provided by the Contextual Importance and Utility XAI method described in the previous chapter.